Current Location:Home > SALES & MARKETING >

Why Do More People Buy Japanese Cars?

Date:05-05 11:30 Source:Che Ye Za Tan Authour:未知

Why Do More People Buy Japanese Cars?

Japanese auto brands have seen sales rebound in the Chinese auto market in the past couple of years. 

 

Although Japanese cars have experienced recalls, we have to admit that their quality is quite good, which must be a key reason why the more rational Chinese customer will choose them. Another important reason is that Chinese customers who attach great importance to family cars choose Japanese cars because they feature user-friendly designs and excellent fuel economy. Moreover, after the incidents where Japanese cars were attacked when China-Japan relations were in a state of great tension, the Chinese government issued laws and regulations to protect the property of private individuals, which has given buyers who prefer Japanese cars more confidence.

Japanese cars have struggled in China in recent years for a series of reasons, including the recall incident, the serious earthquake in Japan, China-Japan tension, their misjudgment of turbocharging technology, and their conservative marketing approaches.

But Japanese auto brands have seen sales rebound in the Chinese auto market in the past couple of years. 2015 saw a notable upsurge in both the sales and growth rate of locally produced Japanese passenger cars compared with their performance in previous years, although their combined sales growth was still lower than the 9.6% overall growth of the domestic passenger car market in general. In Q1 this year, Japanese cars achieved even better sales in China. Toyota, the No.1 Japanese brand, sold 290,000 new cars in all, achieving YOY growth of nearly 28%.

This means that more rather than fewer Chinese customers have been turning to  Japanese cars in the past two years.

I listed several factors above that have caused Japanese cars' sales to fall in China, but the recall event, the earthquake, and China-Japan tension no longer have any significant influence on Chinese customers. We cannot say that Chinese consumers "pray no more once onshore", but we can definitely say their car-buying patterns have become more rational.

Although Japanese cars have experienced recalls, we have to admit that their quality is quite good, which must be a key reason why the more rational Chinese customer will choose them. Another important reason is that Chinese customers who attach great importance to family cars choose Japanese cars because they feature user-friendly designs and excellent fuel economy. Moreover, after the incidents where Japanese cars were attacked when China-Japan relations were in a state of great tension, the Chinese government issued laws and regulations to protect the property of private individuals, which has given buyers who prefer Japanese cars more confidence.

In the past few years, Japanese cars have performed poorly in the market because they were too slow in developing turbocharging technology, which strikes a balance between power and fuel economy. This technology caught on at a time when young Chinese were becoming a major consumer group, and their pursuit of both power and fuel economy is certainly the main reason why it has become so popular. We see that Japanese cars have begun to catch up in this area over the last two years and have equipped more models with turbo engines. Meanwhile, their long years of effort in the hybrid field have begun to pay off too - China is strongly supporting the development of NEVs, including hybrid cars, and hybrid technology itself has progressed considerably in recent years while hybrid models are getting ever more affordable.

Regarding marketing, there is no denying that the Japanese  are much more conservative than European, American and Korean auto brands, and based on my personal experience their marketing approaches remain conservative today. However, it is also true that Japanese cars have undertaken more marketing initiatives and carried out frequent marketing events in the past two years, covering entertainment programs, advertising, and test drive/riding at all levels.

Some industry insiders point out that Japanese auto brands implement more family-style and rigorous corporate management, but they have made adjustments in the Chinese auto market over the last two years. For instance, Chinese teams have begun to take charge of their marketing and sales departments, which is without any doubt a critical step for getting a better grasp of the needs, demands and trends in the Chinese market. That's why we've seen more Japanese cars catering to Chinese customers' aesthetic and functional expectations in recent years, and Japanese brands have held more marketing and service events that are suited to Chinese tastes as well.In light of all this, I believe many readers should be able to understand why Japanese car sales are now growing again. In my opinion, as China has become the world's largest auto market, Japanese automakers have no choice but to adjust their behavior to meet the needs of the Chinese.


©copyright 2015 autochina.comnews.cn